Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, in this interview with ADEBAYO FOLORUNSHO-FRANCIS, assures Nigerians that the President will deliver on his promises
What were the challenges like for President Bola Tinubu in the last seven months?
Let me start by saying that in truth, things have not been so easy, especially since the reforms we introduced triggered some unintended harsh consequences. For example, we removed the subsidy on petrol, which had become a real albatross on our economy, before President Tinubu took over. Our country was spending N400bn every month on the subsidy and no one was even sure whether those who were enjoying it were Nigerians or foreigners.
In his (Tinubu) inaugural speech, President Tinubu made it clear that the Buhari government did not provide for the subsidy beyond the month of June in the 2023 budget. So it was inevitable that President Tinubu would do the courageous thing by ending the subsidy regime. It had been colossal, unsustainable. It was killing our country, financially.
The second component of the reform has been the move to harmonise the foreign exchange rates. This government had no other choice than to embark on the reform, as some unpatriotic, well-connected Nigerians were making huge profits round-tripping the dollar. Although, we have not reached our destination, this government is working hard to ensure the gap between official and the so-called parallel market is closed.
As we move into the New Year, I believe we are negotiating the corner to a better economy.
But what I learned even from the figures produced by the National Bureau of Statistics is that the inflation rate, which is about 28.20 per cent (as of November) was fuelled mainly by an increase in the fuel price and the rising costs of transportation and food. The government believes these are temporary problems and that inflation will be tamed. The Federal Government is trying to boost agriculture, by encouraging dry-season farming, in Jigawa and some other states. The N2bn given the states after the meeting of the National Economic Council was meant to be invested in seeds and fertilisers to assist farmers produce more food to crash prices. What we are going through now are teething problems. We are hopeful in government that in the first quarter of the New Year, we are going to sing a spirit-lifting song.
Even now as we speak, it is not all gloom in our economy. Investors in the stock market are making money. Nigeria, for instance, has never had it so good in the stock market. The All-Share Index closed at over 74,000 on 21 December, a feat not recorded in decades. Market capitalisation was over N40tn on the same day. Since Tinubu took over, stocks have generally had over 30 per cent yield. Investors cannot complain that the economy is not good.
There are other indicators that show we are making some progress, going by the last report of the National Bureau of Statistics. For instance, even though people are saying the economy is not moving well, we recorded a trade surplus.
In the third quarter of 2023, the total trade of Nigeria was N18.8tn , an increase from N12.16tn in the second quarter. Don’t forget President Tinubu came in the second quarter. But we recorded a trade surplus which we have not had for some time.
While we recorded negative growth in the oil sector, the GDP (Gross Domestic Product) grew by 2.75 per cent in the third quarter, driven mainly by the information and communication sector, including agriculture. The GDP growth in the third quarter was higher than the growth in Q2.
These are indications that things are improving in some areas. People may not feel the immediate impact. But gloomy days are numbered.
Let’s look at the palliatives proposed in the wake of fuel subsidy removal. There have been complaints they are not reaching the targeted poorest and most vulnerable in society
Well, the Federal Government has done its part by releasing money to the states to help soften the effect of the removal of the fuel subsidy. There is a misplaced focus that we keep having in this country. Everybody keeps looking at the federal for everything. Federal this, Federal that..The federal represents about 52 per cent of the nation in terms of revenue it shares with the states and councils. How are the states and councils spending the money they collect from the Federation Account Allocation Committee and other money the government has given them? In fact, everybody knows that the states were given N2bn each to use as palliatives after the subsidy was removed. They were supposed to buy seedlings and fertilizers from that fund. But many of them diverted the money and did nothing. In some states like Borno, we saw what Governor (Babagana) Zulum did with the money. He bought trailers of rice and vegetable oil for his people. He even gave cash. By so doing, the governor must have reached so many households.
People should begin to ask their state governors what they are using the money they collect for.
Just recently, the Federal Government released N7b to each state as infrastructure support fund, out of the N2 Trillion of funds saved for them.
The media should monitor the usage of the money. Because if each state invests in infrastructure, they will create more jobs. When you are repairing and building roads, building hospitals, jobs will be created, people will be employed and they can earn a living.
Is it apt to describe the recent accidental bombing in Kaduna as a setback for the military in the fight against insurgency and banditry?
The Kaduna bombing was a big tragedy and I think everybody involved has shown a lot of remorse for what happened. It was an avoidable accident. It happens globally. When America was fighting the Taliban in Afghanistan, there was a day they wrongly bombed people they thought were the Taliban. It was found later that the victims were just innocent people who were going about their daily work. The Americans got the wrong intelligence and attacked them. The US government later apologised for the accident. Our military has also apologized and has promised that it won’t happen again.
How come nobody is getting punished for the accidental bombing?
Well, the Presidency has said the Kaduna bombing should be probed. Let’s wait for the result of the investigation.
With the promise of functional refineries and investment drive, when exactly will Nigerians start seeing the ‘Renewed Hope’ of Tinubu’s administration?
We are on course in building hope and renewing it. Dangote is already testing his refinery. He said that he is waiting for five more million barrels of crude for full production. For now, he is already producing some aviation fuel and other ones. On the Port Harcourt refinery, the NNPC Limited said it met its December deadline to make the refinery work. By the time the Dangote refinery is in operation at full throttle and Port Harcourt also produces refined products, this country will stop importing fuel and wasting scarce forex on what we should be producing locally.
The NNPC Limited said the importation of fuel will stop by the last quarter of 2024. This is one hope that will soon become a reality.
Are you strongly convinced Tinubu can steer Nigeria out of its present economic mess?
Tinubu will do his best. He is a well-focused, courageous leader. He thinks outside the box. As he used to say, he asked for this job and does not need our pity. He strongly believes he can turn around our country and in fact, has started putting the building blocks in place to ensure he arrives at the destination he hopes to take the country. I don’t envisage any fear that he will deliver as he promised.
I think people should exercise some patience. Things are going to improve. If you look at the economic indices we are getting, things are already improving. Although people are not feeling it, I believe by the first quarter of next year, people will begin to feel the impact of the various efforts by the government to tackle the challenges we are going through at present.
What will you say provoked President Tinubu’s sudden move to partner major luxury bus owners to slash fares by 50% for interstate travel?
President Tinubu listens to Nigerians and feels the pulse of the people all the time. He reads newspapers daily, reads the columnists, and is able to distill public opinion.
In many of his engagements, he has always acknowledged the temporary problems people are going through and is always receptive to ideas about ameliorating the situation and giving succour to the people. That was the reason behind his decision that the FG bear 50 percent of the transport costs for those going home, by road, for the Yuletide.
Besides, President Tinubu is naturally a man of compassion. He will do anything to ensure that our people do not suffer.
